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Tuesday, July 26, 2016

RBS Warns Clients May Face Negative Interest Rates

In another reminder that monetary unorthodoxy in the face of NIRP is coming to a savings account near you, overnight the RBS banking group warned 1.3 million customers they could be charged negative interest rates if the Bank of England cuts base rates below zero. The group, which includes NatWest, wrote to its business and commercial account holders about the potential changes, which mean they could lose money even when they are in credit.

As seen in the letter posted below, the bank warned that: "Global interest rates remain at very low levels and in some markets are currently negative. Dependent on future market conditions, this could result in us charging on credit balances."

As Sky reports, RBS and NatWest would be the first banks in UK history to charge negative interest rates. However, a spokeswoman for the group stressed there are no plans to inflict any of these changes on its personal banking customers.